Canton Settlement
Financing
Meeting a margin call shouldn’t mean liquidating a position. BridgePort’s Settlement Financing dApp on Canton Network gives institutional trading firms access to intraday financing, 24/7, secured against their digital asset holdings with atomic settlement.
- In-flight capital
- Broker approved
- Atomic settlement
The obligation lands while the capital is already committed
A margin call arrives during a volatile move. The capital that would cover it is in flight to settle, or locked up against positions being traded. Neither pool can be reached in time.
That leaves two options, and both cost money. Liquidate into a market that is moving against you, or carry a permanent cash buffer against a call that usually never comes. Firms end up paying for the second one every day of the year to avoid the first one a few times a decade.
Financing against capital that is already in motion
Six steps from opening an escrow to releasing the collateral, with the draw and the lock committing together.
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Escrow is opened
A lender opens an escrow account through the coordination layer and commits liquidity to it. The liquidity stays under the lender’s control and stays visible only to the parties involved.
Always on -
Collateral is pledged
A borrower facing an obligation pledges a holding rather than selling it. The holding never leaves institutional custody.
In custody -
The broker approves
The request moves to the broker node for review. Collateral and terms are checked before anything commits.
Reviewed -
Liquidity is drawn
The borrower draws what the obligation requires. The lender’s funds only move if the borrower’s collateral locks at the same moment.
Atomic -
Repayment clears
Once the underlying trade settles, the borrower repays principal, fee and interest. This is financing measured against a settlement cycle rather than a term.
Same cycle -
Collateral is released
The lock lifts and the holding returns to the borrower’s balance with all-or-nothing finality. No residual obligation is left open.
Final
Both legs settle in the same instant
The lender’s liquidity and the borrower’s collateral lock are not two transactions that happen close together. They are one transaction.
What changes for the desk
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Capital stops sitting still
Firms hold cash buffers against calls that mostly never arrive. Financing that is available on demand removes the reason to keep that buffer, so the capital goes back to work.
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A call stops forcing a sale
Meeting an obligation no longer means liquidating into a market that is already moving against you. The position survives the volatility that created the call.
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No over-collateralisation
Credit is sized against what is actually pledged and priced on ledger, rather than against a worst case that ties up several times the exposure.
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No exposure between the legs
The lock and the transfer are one transaction. There is no window where one party has performed and the other has not.